Capitalism, socialism & mixed economy

2. An economic system is the combination of the various agencies, entities that provide the economic structure that guides the social community.

5. Capitalism

11. Socialism

17. COMPARISON

18. COMPARISON..

19. BASIS OF DIFFERENCE CAPITALIST ECONOMY SOCIALIST ECONOMY Resources Ownership Privately owned State owned Foundation belief competition brings out the best in people cooperation is the best way for people to coexist Earning of wealth everyone works for his own wealth everyone works for wealth which is distributed equally to everyone Market Scenario Level playing field Protection to PSUs, Private enterprises are permitted in few businesses only Govt. interference Only in situations where laws have been broken Fully involved Employees motivation Highly motivated on account of proportional benefits Rarely motivated as performance is not rewarded Merit Perception of better economic growth because of competition Equal distribution of income results in welfare of all Demerit Few individuals/groups attain powers, rest are exploited Hard work is not rewarded, lazy employees also enjoy equal level of benefits